Indonesia prepares to excel in green aluminium production with UAE's strategic intervention

Indonesia, rich in bauxites, seeks to harness its natural resources to emerge as a frontrunner in green aluminium production. Green aluminium, synonymous with sustainability and environmental consciousness, employs renewable energy or recycled materials in its manufacturing process. The nation's aspiration to process its abundant resources indigenously not only promises economic growth but also aligns with global demands for eco-friendly solutions.

At a recent Dubai Chambers forum in Jakarta, Pradana Indraputra, a special advisor at the Investment Ministry, focused on Indonesia's keenness to collaborate with the UAE, particularly in the aluminium sector. Advocating for green aluminium production, he highlighted the potential to serve the never-ending needs of global giants like BMW, who prioritise eco-friendly materials in their manufacturing processes.

Indraputra commented: "In the domestic processing sector, we are hoping to nudge the UAE to invest in Indonesia, including in the aluminium sector. But not just aluminium; we want them to invest in green aluminium." 

"Hopefully, the green aluminium that Indonesia and the UAE jointly produce can lead the global market. Because take a look at the European automotive firms like BMW -- they need green aluminium for their production," Pradana added. 

Exploring opportunities with Emirates Global Aluminum (EGA)

Emirates Global Aluminum (EGA), a prominent player in the industry, stands poised to contribute to Indonesia's green aluminium plans. EGA's pioneering utilisation of solar power in aluminium production aligns seamlessly with Indonesia's commitment to sustainable practices. The ongoing feasibility study between EGA and Indonesia's state-owned aluminium smelting company, Inalum, holds promise for enhancing production capacities and meeting burgeoning market demands.

Noteworthy is the UAE's significant investment in the 145-megawatt Cirata floating solar plant, a testament to its commitment to renewable energy initiatives in Indonesia. Led by the energy giant Masdar, this endeavour defines the synergistic partnership between the two nations in advancing sustainable development goals.

"One of the Emirati investors [that are pursuing cooperation related to aluminium] is EGA. The company has been in talks with Inalum. They have also been talking with other private companies, as far as I know," Pradana reinstated.  

Future prospects and collaborative vision

While the UAE currently ranks modestly as Indonesia's foreign investor, the burgeoning collaboration in the aluminium sector signals a transformative trajectory. With ongoing discussions and investments, both nations are poised to redefine the global aluminium landscape, offering sustainable solutions to meet evolving market demands. To know more about the international aluminium market, please take a glance at AL Circle's special report, Global Aluminium Industry Outlook 2024.